One of the largest deals of the quarter was Amazon’s lease at Georgetown Crossroads in South Seattle. Amazon occupied the remaining 494,000 sq. ft. of the multi-story warehouse, which is also partially leased by Home Depot. The warehouse is the first of its kind in the U.S.—a creative solution to provide last-mile warehouse space in a market with scarce developable land.
The Kent Valley experienced a slowdown this quarter, causing direct vacancy to increase to 5.25%, an 85 bps increase from Q2 2019. The increase is partly due to the continued delivery of space to the market—new supply through Q3 2019 total 1.6 million sq. ft., outpacing 2018.
Investment sale activity decreased slightly from the previous quarter, resulting in $317 million of sale volume throughout the Puget Sound.